Question

I owe my credit card company £3,216 in total, and have been paying them £1 a month since I lost my job last year.

They now have sent me a letter stating if I pay them £1,500, they will consider the debt paid in full. They even said I could pay the £1500 in 2 payments.

Is this a good deal and should I do it?

Jacqui

Answer

Jacqui,

Creditors can and do offer settlements on accounts, this is in part to allow them to close the account and also to get some money in and not lose the entire balance,

An offer of £1,500 on a balance of over £3,200 is over a 50% reduction, and does sound like a good offer.

Do you have the money to pay this? That is the real question.

You can read more on settling a debt here.

Regards,

Jon

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